Business

NC businesses fear crashing over 'fiscal cliff'

Posted November 30, 2012

— With only one month until across-the-board federal budget cuts kick in, the White House and Congress continued to maneuver Friday for political leverage in the national debt debate.

President Barack Obama urged Congress on Friday to pass an extension of tax cuts for middle-class families, saying a tax increase for them would be like a "lump of coal" for Christmas.

In his first campaign-style event to sell his solution on the so-called "fiscal cliff," Obama was in Philadelphia suburbs to say that Republicans should extend existing Bush-era tax rates for households earning $250,000 or less while allowing increases to kick in for the wealthy.

Democrats and Republicans need to "get out of our comfort zones" to reach an agreement, he said.

The president toured a manufacturing facility that builds construction toys, joking that he's keeping his own "naughty and nice list" for Congress and telling the public to pressure lawmakers to pass the tax cut extension for the middle class.

U.S. House Speaker John Boehner, meanwhile, said current talks have reached a stalemate. He and other Republican leaders are calling on Obama and Democrats to give more spending cuts than are currently on the table, saying tax increases would hurt small businesses just coming through the recession.

"Hopefully, folks in Congress and the White House will show some leadership and do the right thing for America and North Carolina," said Lew Ebert, president of the North Carolina Chamber.

U.S. Capitol NC business leaders call for debt deal

If no deal is reached, some economists predict the U.S. economy could fall back into recession. Estimates suggest 3.4 million jobs could be lost nationwide.

"It could be a real blow to the North Carolina economy at a time we could ill afford it," Ebert said.

A recent report from the National Association of Manufacturers says more than 1 million private-sector jobs are at risk, including 34,000 in North Carolina.

Cary-based Lord Corp., which makes products from adhesives to vibration- and motion-control devices, plans to hire 70 people next year, including scientists, engineers and salespeople. President and Chief Executive Rick McNeel said those plans would be jeopardized if no agreement is reached by the deadline.

"It's a national issue. It's a state issue. It's an issue for Lord," McNeel said.

More than a third of the global company's business is in aerospace projects, including 15 percent in defense contracts.

"I think it'll be an issue for many companies that have no idea it's going to be an issue for them," McNeel said.

132 Comments

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  • retiredindependentpopo Nov 30, 7:59 p.m.

    The rich pay _less_ of their disposable income than anyone else does. Including those who pay NO income tax (because most of them pay plenty of OTHER taxes).

    This is exactly what John Kerry did when he bought a yatch and mored it in a differing state that his own. Cheaper taxes!!!!!

  • Tug Boat II Nov 30, 7:59 p.m.

    I guarantee that a deal will be struck at the last minute, and trust me. The devil is in the details that no one will like. Both Democrats and Republicans don’t’ want the public to see their outlandish spending habits that are nothing but buying votes for the next election. Both are guilty of ridiculous spending. I hope we do go off the Financial Cliff and let America learn and develop better spending habits. Trouble is, we keep electing the same people and expect different results.

  • junkmail5 Nov 30, 7:54 p.m.

    The FACTS SHOW those so-called "wealthy" already pay the bulk of all Federal taxes collected.... everyone talks about a "fair share", but then simply ignore the nearly 50% in American that pay NO Federal income taxes at all- mep

    We've been over that.

    They pay no income tax because of the tax policies Reagan pushed in 1986 and Gingrich passed through congress in the 90s.

    Why are you suddenly mad about what the republicans pushed through just because a democrat is in office?

    But really, read the link I posted so you can learn what the marginal value of a dollar means too...

    The rich pay _less_ of their disposable income than anyone else does. Including those who pay NO income tax (because most of them pay plenty of OTHER taxes).

  • junkmail5 Nov 30, 7:52 p.m.

    Who cares how much the rich HAVE. The rich are now paying twice their "share" to the government- M-Man

    No, they aren't.

    They're paying LESS than they have, ever, in your lifetime.

    Why do republicans not understand numbers?

    BTW, I _hate_ big government and think FDR about ruined this country.

    But I can also do math.

    I'd LOVE to see a LOT of government cuts. But we _also_ need increased revenues.

  • retiredindependentpopo Nov 30, 7:51 p.m.

    Rep. Lacy Clay, D-Mo., said, "If the people don't want it and they don't want to use it," she said, "why in the world are we even talking about changing it?" She said this about doing away with the dollar bill and changing to a dollar coin. Wonder why they did not use this logic with obama care and now with the obama economy about to go over the cliff. Do we use pelosi's logic, let it crash and we will find out what is in afterwards????

  • Rebelyell55 Nov 30, 7:51 p.m.

    I'm just shocked that there is so many that don't have a clue at to how our taxes are collected and spent.

  • batcave Nov 30, 7:47 p.m.

    You just earned a Gold Star for the dumbest comment of the day. Congrats!

    agreed it makes on sense, 2012? pick and choose. Georgia and West Va voted for Mondale, swing and a miss.

  • M-Man Nov 30, 7:47 p.m.

    junkmail5, you are a true big government lemming that looks at the economy as a fixed sized pie that has to be divied up in politically correct manner. Who cares how much the rich HAVE. The rich are now paying twice their "share" to the government in support of its ever increasing wasteful spending compared to before. How great of a share should "rich people" be forced to contribute compared to "non rich" to keep government going? 100% ??

  • storchheim Nov 30, 7:43 p.m.

    "I'm sorry, but if you're making $260,000, another $390 in tax isn't a huge burden." hp27

    Let's ignore the fact that no one except the person who earns the money has a say in whether it's needed or how it's used.

    Today the cutoff is $250k. You don't think it's going to remain $250k once it's passed, do you? Did you notice that in 2014, the penalty for no health ins is $95; in 2016, it's $695.

    This is what's so easy to lose sight of. Once any tax is passed, it will rise.

  • dsjackson Nov 30, 7:43 p.m.

    Why can't the Democrats concede that they can't cut one lousy cent from the debt without cutting spending ! Just adding taxation , even raising the top bracket , will not put a dent in a trillion dollar plus yearly debt . Freebies continue to drain our nation ( food stamps ,welfare , Medicaid , etc . ) . We cannot continue to foot the bill for around fifty percent of a nation not working and paying their own way .

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